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Nokia Corporation Message Board

  • conob1 conob1 Dec 17, 2012 11:54 AM Flag

    Wal-Mart Tosses Apple Into The Discount Bin

    Apple has carefully cultivated an image of a premium product. For practical purposes, much cheaper Google Android and Microsoft Windows Phones such as those from Nokia have caught up with Apple in functionality and specifications.

    Until now Apple has had an edge in spite of higher prices of its products because of its premium image. This edge has allowed Apple to generate higher gross margins than the competitors.

    Traditionally it has been unprecedented for brand new Apple products to be discounted, even though older products have experienced discounts. Now the world’s largest retailer, Wal-Mart, has torn down Apple’s premium image. Wal-Mart is heavily discounting the latest Apple products.

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    Wal-Mart is selling the 16 GB Apple iPhone 5 for $127. AT&T‘s price is at $199. Wal-Mart is discounting the 16 GB iPhone 4S for $47, compared to a typical price of $99. Traditionally Wal-Mart has discounted these phones by only $10. Wal-Mart is also selling iPads starting at $399 compared to $499 and Wal-Mart is also throwing in a $30........................

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